New Jersey Employment Law Update: Worker Rights in 2025

As we progress through 2025, New Jersey continues to lead in advancing worker protections and refining employment law to address the evolving needs of its workforce. From wage transparency mandates to enhanced rights for temporary and domestic workers, the state’s legislative landscape is undergoing significant transformations. This comprehensive overview delves into the pivotal changes in New Jersey’s employment law, offering insights for both employers and employees.

Introduction

New Jersey’s commitment to fostering equitable and just workplaces is evident in its proactive approach to employment law. The state’s legislative initiatives in 2025 aim to enhance transparency, protect vulnerable worker groups, and ensure fair labor practices across all sectors. Understanding these changes is crucial for employers striving for compliance and for employees seeking to be informed about their rights.

Minimum Wage Increase

Effective January 1, 2025, New Jersey’s minimum wage for most employees has risen to $15.49 per hour. This adjustment reflects the state’s ongoing efforts to ensure that wages keep pace with the cost of living, providing workers with a more sustainable income. Employers must update their payroll systems accordingly to remain compliant with this change. (Lindabury McCormick Estabrook & Cooper)

Pay Transparency Requirements

Starting June 1, 2025, New Jersey employers with 10 or more employees are mandated to disclose salary ranges and general benefit information in all job postings, including internal promotions and transfer opportunities. This initiative, under the Pay Transparency Act (S2310), aims to promote wage equity and reduce disparities. Employers failing to comply may face civil penalties. (Greenberg Traurig, Epstein Becker Green)

Worker Classification and the ABC Test

The New Jersey Department of Labor and Workforce Development (NJDOL) has proposed new rules to clarify the application of the ABC test, a standard used to determine whether a worker is an employee or an independent contractor. These rules aim to prevent misclassification, ensuring workers receive appropriate benefits and protections. Employers are encouraged to review these guidelines to ensure proper worker classification. (New Jersey State Website)

Temporary Workers’ Bill of Rights

The Temporary Workers’ Bill of Rights (TWBR) has introduced significant protections for temporary laborers in New Jersey. Key provisions include:(Epstein Becker Green)

• Equal Pay: Temporary workers must receive the same average rate of pay and equivalent benefits as permanent employees performing similar work.
• Assignment Information: Staffing agencies are required to provide detailed information about job assignments, including work location, hours, and compensation.
• Anti-Retaliation Measures: Employers are prohibited from retaliating against temporary workers who exercise their rights under the TWBR.(Epstein Becker Green)

These measures aim to promote fairness and transparency in temporary employment arrangements. (Epstein Becker Green)

Domestic Workers’ Bill of Rights

Enacted on July 1, 2024, the Domestic Workers’ Bill of Rights (S723) extends labor protections to domestic workers, including housekeepers, nannies, and caregivers. Key rights under this law include:(Epstein Becker Green)

• Written Contracts: Employers must provide a written agreement outlining job duties, wages, and working conditions.
• Minimum Wage and Overtime: Domestic workers are entitled to the state’s minimum wage and overtime pay for hours worked beyond 40 in a week.
• Rest Periods: Workers must receive meal and rest breaks during their shifts.
• Privacy and Anti-Discrimination: The law prohibits discrimination and ensures the right to privacy in the workplace.

This legislation recognizes the vital contributions of domestic workers and ensures they receive fair treatment under employment law.

Protections Against Immigration Status Retaliation

Under S2869, New Jersey employers are prohibited from threatening to disclose or actually disclosing an employee’s immigration status to retaliate against them for asserting their rights under employment law. Violations can result in penalties of up to $10,000. This law reinforces the state’s commitment to protecting all workers, regardless of immigration status, from exploitation and retaliation. (Epstein Becker Green, New Jersey State Website)

Gender-Neutral Dress Code Policies

The New Jersey Attorney General has clarified that dress codes enforced by employers must be gender-neutral, ensuring compliance with the New Jersey Law Against Discrimination (NJLAD). This guidance came after a case where a nonbinary individual was subjected to a gender-specific dress code, highlighting the need for inclusive workplace policies that respect all gender identities. (Epstein Becker Green)

Right to Sit Legislation

New Jersey’s “Right to Sit” law mandates that employers provide suitable seating for employees when the nature of the work allows it. Originally enacted in 1882 and made gender-neutral in 1980, this law aims to prevent unnecessary physical strain on workers, promoting health and comfort in the workplace. (en.wikipedia.org)

Data Protection and Privacy

The New Jersey Data Protection Act (NJDPA), effective January 15, 2025, enhances consumer privacy rights concerning personal data collected by employers and other entities. Key provisions include:(Lindabury McCormick Estabrook & Cooper)

• Data Access and Correction: Individuals have the right to access and correct their personal data.
• Data Deletion: Consumers can request the deletion of their personal information.
• Opt-Out Rights: Individuals can opt out of the processing of their personal data for targeted advertising or sale.(Lindabury McCormick Estabrook & Cooper)

Employers must ensure compliance with these requirements to protect employee data and avoid potential penalties.

Conclusion

New Jersey’s employment law landscape in 2025 reflects a robust commitment to worker rights, equity, and transparency. Employers must stay informed and adapt to these changes to ensure compliance and foster a fair workplace environment. Employees, in turn, should be aware of their rights to advocate effectively for themselves. As the state continues to lead in progressive labor policies, staying abreast of these developments is essential for all stakeholders in the employment sector.